Netflix upgraded, Coinbase downgraded: Wall Street’s top analyst calls

The most talked about and market moving research calls around Wall Street are now in one place. Here are today’s research calls that investors need to know, as compiled by The Fly.

Top 5 Upgrades:

• Goldman Sachs upgraded Netflix (NFLX) to Neutral from Sell with a price target of $400, up from $230, ahead of the company’s Q2 results. The upgrade reflects the overall positive current operating performance for Netflix and continued forward positive operating momentum into 2024 and 2025, the firm says. (Read more)
• Northland upgraded AMD (AMD) to Outperform from Market Perform with a price target of $150, up from $81. The firm sees a risk that it is upgrading too late, but thinks AMD shares will “get an AI multiple.” (Read more)
• DA Davidson upgraded Rivian Automotive (RIVN) to Neutral from Underperform with a price target of $18, up from $11. The cadence of headlines for the company is turning more positive, the firm tells investors in a research note, noting that its imminent entry into Europe with its delivery van was expected eventually, but comes far earlier than anticipated. (Read more)
• BMO Capital upgraded BioMarin Pharmaceutical (BMRN) to Outperform from Market Perform with an unchanged price target of $102. At the stock’s current valuation, Roctavian “constitutes an upside opportunity” as it is largely not priced in, the firm says. (Read more)
• Wedbush upgraded Pegasystems (PEGA) to Outperform from Neutral with a price target of $65, up from $50. The firm cites incrementally better field checks and calls Pegasystems “an under the radar AI story that is now starting to form.” (Read more)

Top 5 Downgrades:

• Piper Sandler downgraded Coinbase (COIN) to Neutral from Overweight with a price target of $60, down from $65. The firm cites valuation and a belief that the recent case brought forth by the SEC, as well as the continued lack of regulatory clarity in the U.S., has created “too much uncertainty to prudently project revenues in future years.” (Read more)
• Barclays downgraded Lumentum (LITE) to Underweight from Equal Weight with a price target of $42, up from $40. The shares are “expensive” with no catalyst on the horizon and a telecom inventory overhang “looming,” the firm says. (Read more)
• Jefferies downgraded Conagra Brands (CAG) to Hold from Buy with a price target of $38, down from $46. The company reports fiscal Q4 results on July 13 and U.S. tracked channel data for the quarter shows sales decelerated to up 4% with volumes down 6.5%, while trends worsened in June, the firm notes. (Read more)
• Deutsche Bank downgraded Gaming and Leisure Properties (GLPI) to Hold from Buy with a price target of $52, down from $60. The firm cites the stock’s current valuation, a more challenging acquisition landscape, and increasing financing costs which are likely to drive slower funds from operations growth. (Read more) Deutsche Bank also downgraded VICI Properties (VICI) to Hold from Buy with a price target of $34, down from $39. (Read more)
• UBS analyst Damian Karas downgraded SPX Technologies (SPXC) to Neutral from Buy with a price target of $90, up from $80. The firm notes that the stock has outperformed industrial peers and the broader market by 25 points since reporting Q1 results and now “priced for perfection,” with investor sentiment “likely peaking.” (Read more)

Top 5 Initiations:

• Jefferies initiated coverage of Hertz (HTZ) with a Buy rating and $24 price target. The firm believes the company’s pricing and margins “can run structurally higher” versus pre-COVID levels, driven by a “dysfunctional oligopoly turned functional” and continued supply constraints. (Read more)
• Citi initiated coverage of Plug Power (PLUG) with a Buy rating and $13 price target. Citi believes the company will act as an enabler of hydrogen switching and capture near to long term opportunities through the entire value chain. (Read more)
• Seaport Research initiated coverage of Materion (MTRN) with a Buy rating and $135 price target. The firm says the company has “impressive growth characteristics,” with exposure to “megatrends” that are driving application growth and opportunities to innovate. (Read more)
• BofA initiated coverage of Rollins (ROL) with a Buy rating and $49 price target. The firm says it has a “high degree of confidence” in the company’s ability to compound revenue and earnings through cycles as the second largest pest control company in the U.S. and globally. (Read more)
• Chardan initiated coverage of 4D Molecular (FDMT) with a Buy rating and $30 price target. The firm believes the company’s platform has the potential to tackle historic obstacles to in vivo gene delivery. (Read more)